News: Pensioners' Home Equity Worth £767bn

Thu, 10 Jun 10

The value of homes owned by pensioners has risen by nearly £2bn since the beginning of the year, according to latest research.

According to research by equity release firm Key Retirement Solutions those over 65 had £767bn of equity in their homes at the end of May, £1.88bn more than in January.

However, the data shows that location makes a massive difference, with pensioners in 5 out of 11 UK regions seeing a fall in their equity.

Those living in Scotland have seen the value of their equity fall by 7.8% since January. Those living in West Midlands, Wales, Yorkshire and Humberside and the south east of England also saw a fall.

Retired homeowners in the north east of England saw a rise of 4.6% in their equity level during the same period. Those in the north west saw a rise of 1.8%.

Dean Mirfin, group director at equity release firm Key Retirement Solutions, said: "The housing market recovery remains patchy with winners and losers across the country.

"The property wealth owned outright by pensioners represents a potential source of income for the over-65s particularly when other sources of retirement income are under pressure from low interest rates, rising inflation and falling annuity rates."

By Joe Lepper 

See also: Asking Price Index, House Prices and Trends by Town and Postcode, Mortgages, Life Insurance and Mortgage Protection Guide

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